Glaxo’s Generous Dividend Policy Boosted by Twice-a-Day Brushing
- Witty forecasts consumer unit can pay half the dividend
- Glaxo sees consumer business sales climbing to $14 billion
Andrew Witty.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Teeth aren’t the only thing Sensodyne toothpaste can protect from pain and erosion. The 55-year-old product holds the promise of delivering a similar service to GlaxoSmithKline Plc’s shareholders.
The toothpaste is part of a consumer-health business that could in a few years generate enough cash to cover half the dividend Glaxo pays to investors, Chief Executive Officer Andrew Witty said in an interview. The division, a joint venture with Novartis AG controlled by London-based Glaxo, is likely to deliver as much as 10 billion pounds ($14.4 billion) in revenue, he said.